After a couples weeks in a hopeful recovery phase, the bitcoin price has entered another bearish channel. However, it looks like the price will bounce upwards near $3,500 USD and begin an upward climb to $14,000.
Bitcoin Price Technical Analysis
The bitcoin price couldn´t break a strong descending resistance at $12,000 and confirmed the down trend to the technical support near $3,500. From there, the 5th wave from Elliott´s theory will end the downward development to start an ABC pullback, which would spark a big upward movement back to a reversal target at $14,000.
Focusing on mass psychology, after the buying euphoric phase we saw last November 2017, when prices climbed to December´s Bubble at $20,000, the following phase should be the Panic sell off that ends the cycle to start a new one all over again from the bottom
The bearish trend is still going on, and the current $9,000 support seems too weak to sustain or stop quotes in their way down. Therefore, the next supports can be analyzed at $5,000 and $3,500, where a bounce is expected to balance the market, end the fall and kick off a strong rise.
A big diamond formation could be taking place in the charts, and if it confirms – first going down and then back up — the bearish trend will finally break to the up side.
Mathematical indicators seem too exhausted to back a reversal movement from this level. Thus, lower prices are expected, performing this pattern whose characteristic is to change the trend to the opposite.
According to Japanese Candlestick Analysis, March started with a bearish signal called Evening Star, and has reflected a lot of bearish days so far.
Below $9,000, the nearest support can be estimated near $5,000, but the real target still stands at the bottom of the channel near $3,500. The same bearish signal we analyzed at $20,000 is still at play, while news and political factors have worked to sustain a lateral.
Bullish consensus is low currently, and values could go down to allow a reversal movement.
What do you think will happen to the bitcoin price? Share your predictions in the comments section.
Image via NPR
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